Tables turn as western Sydney dining-out booms
Sydney’s western suburbs are emerging as a new epicentre for food spending, with new data showing consumer spending growth outpacing the city’s traditionally dominant dining markets in the east and north.
The data in the Spend Signals report from Retail Property Australia reveals some of the strongest growth in food catering and retail activity occurring outside the city’s traditional inner-city dining hubs.
The report builds a spend map of Greater Sydney using transaction data from CommBank iQ to capture geographic spending trends, the type of consumer driving them today along with where future momentum is likely to come from.
It found western and southwestern Sydney suburbs are recording some of the city’s strongest growth.
Food catering spending saw some of the highest growth in Fairfield (+13.2 per cent), Auburn (+13.1 per cent), Canterbury (+13.1 per cent), Parramatta (+12.0 per cent) and Merrylands-Guildford (+12.0 per cent), now outpacing many eastern and northern Sydney markets.
While the city’s highest spending remains concentrated in affluent areas led by the Eastern Suburbs-North at $2,293 per person per month, followed by Manly ($2,199) and North Sydney-Mosman ($2,113) the strongest growth is coming from suburbs further west, including Canterbury (+9.4 per cent), Parramatta (+7.8 per cent) and Marrickville-Sydenham-Petersham (+7.7 per cent).
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Parramatta is one suburb seeing some of the strongest spending growth in Sydney. Picture: Jonathan Ng
Retail Property Australia Executive Director William Power said the findings reveal a broader shift in how Sydney consumers are spending and can inform how retail precincts best meet the needs of local communities.
“Traditionally, we’ve seen a higher dining out spend concentrated in the inner city and eastern suburbs, but we’re seeing that behaviour spread into growth corridors across western Sydney,” he said.
“As communities grow, attract new jobs and become more established, spending patterns evolve with them. The data shows that change is already underway.”
New consumer spending data reveals some of Sydney’s strongest growth in food catering and retail activity is occurring outside traditionally dominant dining markets in the east and north
These findings come as households remain under pressure from the rising cost of living.
While 30 to 49-year-olds remain Sydney’s biggest spenders, it was Gen Z leading growth, with consumers under 30 the fastest-growing spending cohort in 89 per cent of Sydney markets analysed led by Canterbury, Leichhardt, Carlingford and Auburn.
Across Australia, retail spending growth remains broad-based, led by Food Catering (+8.5 per cent), General Retail (+8.4 per cent), Jewellery, Watches and Luxury (+7.6 per cent), Retail Services (+6.4 per cent) Leisure (+6.1 per cent).
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Sydney’s highest spending markets remain concentrated in affluent eastern and northern suburbs, led by Eastern Suburbs-North ($2,293 per person per month), Manly ($2,199) and North Sydney-Mosman ($2,113)
“More budget conscious consumers and changing preferences will drive change in the spend map over time, influencing how physical retail spaces best cater to their needs,” Mr Power said.
“Understanding which communities are growing, how younger consumers are spending and how retail habits are changing is important for retail investors and property owners planning for the future.”
